Business for sale – New Niche

Sale and purchase of ready business – a relatively new niche in the market of commercial real estate in Russia.Therefore, very few people imagines, what kind of animal this ready business , how much it should cost and what constitutes the difference between the store and the cost of retail space, travel agencies and apartment as an office …

Here you can use a simple analogy. Take, for example, a computer. CPU, motherboard, memory, hard drive … You can collect your own – you can go out and buy ready-made. In any case, collect or buy – everyone decides for himself – and it’s not even the price … Actually, so it is with to buy a business , “components” which we now describe.

“Accessories” Ready Business

The most obvious component of finished business – its tangible assets. Premises, equipment, tools – if all this is just to connect together, then work the business has not. The difference between the ready business from the simple sum of items, that the work of these items have been established. Of course, the value of this “adjustment” in various different businesses: to prepare for the salon, having at its disposal all the necessary equipment – a matter of days. But the difference between an established production line and the same line of “exploded” has no one seems insignificant. A company may have assets such as kitchen appliances – like Juicers, Food Processors and Toaster Ovens.

Second, that there is in the ready business – technology. Anyone who believes that technology is important only in the high-tech industries is profoundly mistaken. The technological aspect is in any ready-made business , even if it seems quite simple. Service companies have well-established methods of work with a client, trading companies – an established and proven assortment policy, this includes well-established mechanisms for working with the staff, in general – all the things that are not visible at first glance, but it is of great importance for the functioning of the finished business.

Staff – the third component of finished business . Maybe personnel for some businesses and not a problem, but what about in order to teach him? Especially in the enterprise, where all employees are absolutely – “brand new” and did not really know what to do. And in some, such as private clinics, the flow of customers and not at all tied to the Company and to employees.

It appears the next asset – customers. Operating enterprise already has so that the new company to turn out to be only – customer base. “Form” customer base depends on the type of business: it can be regular customers or portfolio of long-term contracts already concluded. And even in the ready business , whose services in the definition of “disposable” is the base of former clients, which can lead for a friends and acquaintances.

Brand is the main asset of ready business

An important, and perhaps the most important asset is the trademark or brand. What is a trademark? – This is not just an icon on product packaging or sign and communication system between businesses and consumers. It is possible that the previous owner of the finished business has already invested money in advertising your company, its recognition, reputation and image. The new owner will only support it all – it is much easier than to create anew. There are cases when the value of the brand is the lion’s share of the cost of finished business .

Then – with ready business we acquire and partnerships. What makes this resource? Firstly, it clearly established relationships. Second, these relationships can be more profitable than those that we could create from scratch. In particular, from the previous owner, we can get all the agreement to supply materials with a nice price, “friendly” rental rates (if the business is located within the concession area) and other nice bonuses.

In addition, together with to buy a business , we acquire the company itself – ie, entity. This is – obviously – eliminating the time and cost required by the registration of a new business. And besides with him to us goes his credit and business history.

Experience and history of the company – it is also a kind of asset is ready for sale . Starting a new business, you can never predict how the market will behave, what management techniques will work on it, and what – not on how much we can expect. About enterprise running all this is already known, it is necessary only to be able to read.

All of the above and is opposed ready business from the simple arithmetic sum of its tangible assets. But you should always keep in mind that each of these terms can have a negative value. Credit history of the company can be burdened with debts. Technology can be ineffective or obsolete, employees work an organization may be completely irrational, and the employees themselves can firmly grasp completely horrible service model. Accordingly, the company’s reputation among customers and partners can also be so bad that create it from scratch is a lot easier than to fix an existing one. And, if you decide to buy aready-made business , all this will have to consider when buying.